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Performance and Performance Management Increasing selectivity in what the government does. Letting managers manage Letting the clients speak Increasing transparency of what is being accomplished

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What Drives Improved Performance in the Public Sector Selectivity – focusing on core businessSelectivity – focusing on core business –Combat – government solves all problems Concentration on efficiency of productionConcentration on efficiency of production –Combat – over emphasis on process and rule following

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Drivers of Performance (2) Closely aligning program design with needs of clientsClosely aligning program design with needs of clients –Combat – over emphasis on internal government design setting Increase Transparency and AccountabilityIncrease Transparency and Accountability –Combat excessive discretion for managers

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Definition of Performance Management Process of change –Initial starting point – line-item budget –Identifying what the government is doing –Grouping activities into larger programs –Determining what is produced in each program –Improving program performance through target setting –Establishing accountability for results

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Defining Programs Not merely a reclassification exercise –Establish link between government objectives and the work done by government –Reconsider the roles and missions of government agencies. –Match organizational structure and function. –Revise and align accounting and financial reporting to improve management

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Principles of Program Design One program – one objective Hierarchical structure: program –sub- program-activities-projects. Size appropriate for efficient management Clear connection between resources used and outputs produced (and outcomes). Capture all related activities – integrate capital and recurrent spending

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Principles (2) Establish accountability for the outputs of programs, sub-programs, and activities. Responsibility for implementing each program aligned with a single vote in the budget.

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Keys to Success in Establishing Program Structure Establish clear rules to guide program identification and the level of sub-program and activity aggregation. Align programs and organizational structure of government. Programs and their outputs need to be designed considering the informational resources of the government.

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Defining Output and Monitoring Indicators Internal EvaluationInternal Evaluation Indicators Help Managers Manage Need to be set to focus on what managers car about Especially important for projects and activities External EvaluationExternal Evaluation Indicators focus on outcomes – are we achieving our objectives Especially important for sub-programs and programs

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Defining Indicators For both external and internal monitoring, when performed exclusively by people in government –Too inward looking – outcomes become outputs, Outputs become inputs Importance of broadening participation in indicator setting –Ensure legitimacy and relevance

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Experiences to Date Assists in concentrating resources to government priorities. Enhances efficiency primarily through managers managing for results. Effectiveness continues to be an issue –The local government experience – letting the client have more voice.